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Other Fields Homework Help Economics Topic started by: Sublight2097 on Jun 20, 2015



Title: What happens when the Federal Reserve purchases U.S. government bonds?
Post by: Sublight2097 on Jun 20, 2015
What happens when the Federal Reserve purchases U.S. government bonds?
A) Interest rates rise because bonds become scarcer.
B) Commercial bank reserves increase.
C) The national debt declines in size.
D) The growth rate of the money stock falls.
E) All of the above occur.


Title: Re: What happens when the Federal Reserve purchases U.S. government bonds?
Post by: VincenzoD on Aug 2, 2015
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Title: Re: What happens when the Federal Reserve purchases U.S. government bonds?
Post by: Sublight2097 on Aug 31, 2015
I've noticed they use a lot of trickery with their questions. Thank you for your input.